Companies such as Tech Mahindra and private equity firms such as Apollo and Blackstone had been bidding for the IT company over the last several months. ET had earlier reported that Blackstone had pulled ahead of the out bidders.

HP Enterprises owns about 60.5% of Mphasis’ shares. Blackstone said it had agreed to pay Rs 430 per share to the US technology company.

The deal with HPE will automatically trigger an open offer for an additional 26% of listed Indian IT arm.

Based on the open-offer subscription, Blackstone pegged the purchase price at between $825 million and $1.1 billion.

HP Enterprises has also agreed to sign a five-year master-services agreement with Mphasis, the private equity firm said.

Under the MSA, the US company has committed to a minimum revenue amount escalating year over year and totaling $990 million over the next five years., Mphasis will be included in HPE’s Preferred Provider Program opening up significant additional revenue opportunities.

HP Enterprises is one of Mphasis’ biggest sources of revenue, though that has been declining for several quarters.

“The company has an experienced management team who has a clear roadmap for company’s growth. With a long-term commitment of company’s largest customer, HPE, we are confident that Mphasis will scale new heights,” Amit Dixit, Senior Managing Director and Co-Head of Private Equity in India at Blackstone, said.

MphasiS was founded 2000 and, six years later, Electronics Data Systems Corp bought a majority stake in the firm. Hewlett-Packard bought EDS in 2008 and so took over the majority stake in Mphasis.

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